Thank you @vikas_sinha
Posts in category Value Pickr
Neuland Laboratories Limited – Transformation towards niche APIs? (10-11-2023)
Company has generated free cash flow of around Rs 120 Cr and has now announced a CAPEX of Rs 128 Cr.
Reason
To maintain and cater to the growing demand of our customers.
Capex will be completed in next 24 -36 Months.
Exisitng capacity is 305 KL.
Proposed capacity 207 KL.
Current Capacity utilisation 62%.
Take away points:
Free cash flows generated is being utilised for CAPEX. Company is presently debt free and future CAPEX will also not require any debt as frees cash flow will be sufficient to take care of expansion.
Current capcity utilisation will further increase from 62 % to 90% there by operational leverage will start playing to further improve margins.
Company is having visibility of future growth.
Efficient captial utilisation.
CAPEX investment seems to be chanelised in higher margin products.
Management walks the talk so we can easily infer that Company is having visibility of future orders and therefore increasing capacities. It also ratifies the point that vendors have trust in Neuland.
I look forward for above criterion in compounding stocks.
Disclosure: Invested and will further build position through SIP.
Abbott India: MNC pharma play on increased consumer spending (10-11-2023)
Q2FY2022-23 Quarterly Results
Financial
Vedant Fashions (Manyavar) – Niche Branded Retail (10-11-2023)
I think Vedant Fashion is a very well run, asset light somewhat seasonal business with a long runaway for growth, which as of now is very reliant on one brand. A lot to like but very hard to get valuation comfort when its trading above 50x forward earnings.
A couple of concerns I had –
- If you go to a wedding do you want to be seen wearing the same Sherwani, lehenga as someone else? I personally think its great but don’t think everyone shares my view here. A risk that remains, especially for a brand like Mohey.
- While it may not be a concern but I do believe that with scale, production will not get easier. Basically if production is to double or triple, will they be able to find similar high quality vendors as they do right now? (A happy problem though, as that means you are growing)
Done a deep dive on the business and shared some of my thoughts here.
Vedant Fashions (Manyavar) – Niche Branded Retail (10-11-2023)
I think Vedant Fashion is a very well run, asset light somewhat seasonal business with a long runaway for growth, which as of now is very reliant on one brand. A lot to like but very hard to get valuation comfort when its trading above 50x forward earnings.
A couple of concerns I had –
- If you go to a wedding do you want to be seen wearing the same Sherwani, lehenga as someone else? I personally think its great but don’t think everyone shares my view here. A risk that remains, especially for a brand like Mohey.
- While it may not be a concern but I do believe that with scale, production will not get easier. Basically if production is to double or triple, will they be able to find similar high quality vendors as they do right now? (A happy problem though, as that means you are growing)
Done a deep dive on the business and shared some of my thoughts here.
SKM Egg Products – thinking out of the shell (10-11-2023)
Excellent results again by SKM, YOY growth 27%, EPS 10.25. FY24 forward P/E at around 8 and FY24 EPS will be around 45 rs. Cheap valuations at current earnings. Future looks good
SKM Egg Products – thinking out of the shell (10-11-2023)
Excellent results again by SKM, YOY growth 27%, EPS 10.25. FY24 forward P/E at around 8 and FY24 EPS will be around 45 rs. Cheap valuations at current earnings. Future looks good
Companies with 20%+ growth guidance for next few years (10-11-2023)
from company’s presentation